keysandthelocksneededtobechanged;or
ifyoucauseddamageordidnotleavethe
premisesinareasonablycleanstate,
compared with the original condition
report, apart from “fair wear and tear”.
So how do you claim your bond? The
process is fairly similar in all states and
territories but we will use NSW as an
example. You can also check with the
department of consumer affairs or rental
authority in your state or territory.
The first step is for the landlord or agent
to conduct a final inspection. It’s a good
ideatoagreetoatimesothatyou’rethere
too. That way you can deal with any issues
that may arise on the spot. If you both agree
on the refund amount then the landlord/
agent can fill in the relevant form, which
youwillalsoneedtosignbeforeitis
lodged. The NSW Office of Fair Trading
warns you should never sign a blank form.
Always make sure the bond refund
amountsarefilledin.Youmayalsobeable
tolodgeaclaimonlineifanonlineaccount
was set up when you paid the bond.
Ifyoucan’tagreeabouttheamountor
theyaretakingtoolong,youcanlodgea
form yourself without their signature on it
or submit an online claim if applicable. The
agent or landlord will be notified and have
14 days to contest or agree with your claim.
If they agree they can sign the form and theversus $3819 on a principal and interest
loan at the same rate.
The Reserve Bank says some lenders
haveincreasedthepriceofinterest-only
loanstoreflecttheirhigherrisk.Itsaysthe
four major banks have announced an 0.18%
premium for interest-only loans to home
owners, and a 0.15% premium for investors
- on top of any premium they already pay
forhavinganinvestmentloan.
Non-bank lenders not regulated by APRA
sawanupsurgeininvestorapplicationsfol-
lowing the introduction of the 10% cap on
investment lending growth and have been
gearing up for further growth following
thelatestrestrictions.However,APRAhas
warned it will also be looking at so-called
“warehouse facilities” used by banks and
other regulated lenders to allow non-bank
lenderstobuildaportfolioofloansthat
will eventually be securitised. The federal
budget also laid out plans to bring non-bank
lenders under APRA’s supervision.RISK TO OWNER-OCCUPIERS
While investors are the biggest users of
so-called “high-risk loans”, a growing num-
ber of owner-occupiers have been borrow-
ingonaninterest-onlybasisastheycould
afford to service a larger loan. This willbemoredifficultwithinterest-onlyloans
capped at 30% of new lending.
Many households are protected
from a downturn or higher inter-
est rates because they’ve made
pre-payments on their loans.
Balances in offset accounts,
redraws and so on account for a
high 17% of outstanding loans
–oraround2½years’worth
of repayments. But as the
Reserve Bank points out, not
everyone is so well protected.
About a third of borrowers
have no buffer, or less than
one month’s repayments, which
leaves them vulnerable.
On another level, any exodus
of investors from the market would
alsoaffecthousepricesmorebroad-
ly.TheReserveBankhaswarnedthat
investors amplify both the highs and lows
ofcycles,particularlywhentheyarehighly
indebted.Anadditionalfactorinthemixis
theinfluenceofoverseasinvestorswhoare
also about to be hit with tougher measures
announcedinthebudget.
Andwhileapotentialfallinpricesmight
soundlikegoodnewsforwould-befirst-
home buyers, they would also be affected
by any accompanying slowdown in the
broader economy.DID YOU KNOW?
TheReserveBanksaysinterest-
onlyloansnowmakeup23%ofowner-
occupier and 64% of investor lending.BEST-CASE SCENARIO
The regulators are well aware that the entire property
marketcouldsufferiftherewasasuddenwithdrawalof
investment lending. The measures are designed to curb riskier
lending practices in an orderly manner.WORST-CASE SCENARIO
AstheReserveBankhaspointedout,investorscanamplifyboththe
ups and downs of property cycles, generating additional risks to the
health of the economy. As rising prices draw more investors into the
market, household indebtedness is rising, making highly leveraged
borrowers more vulnerable to any downturn.THE WILD CARD
Interest-only loans are at historically high levels,
raisingtheprospectthatmanyborrowerswill
find they have negative equity in their
property if prices fall.moneywillbeinyouraccountinamatter
ofdays.Iftheydon’ttheymaydiscussthe
claimwithyoubutifanagreementcan’tbe
reached they can apply to the NSW Civil
and Administrative Tribunal to contest
your claim.
Itmayalsoworkinreverse–ifthelandlord
or agent lodges a claim to deduct some
money, you will be notified and have 14 days
to contest the claim. Try contacting the
landlord/agentfirsttoseeifyoucancometo
an agreement. If not you should contact the
tribunal within the 14 days, otherwise the
bond will be paid out as per the landlord’s
claim.MakesureyounotifyFairTrading
that you are disputing the claim.Annette Sampson has written extensively on
personal finance. She was personal finance
editor withThe Sydney Morning Herald,a
former editor of theHerald’sMoney section
and a columnist forThe Age. She has writ-
ten several books.